"MARKET OUTLOOK FOR 09.02.2011"

The 30-share BSE Sensex closed at 17,775, down 261 points and the 50-share NSE Nifty fell 83 points to 5,312, after hitting intraday lows of 17,742.18 and 5,303.40. The broader indices saw more sell-off as compared to benchmarks - the BSE Midcap Index was down 2.4% and Smallcap down 3.2%.

The Nifty February 5100 put saw huge addition in open interest - about 33% - with the feeling that there would more downside going ahead. In a surprising move, China raised benchmark lending and deposit rates by 25 bps after our markets closed. European markets, after a negative opening, recovered and were trading with modest gains. US stock futures were marginally in the green and presently trading with minor gains.

VIEWS FROM DIFFERENT BROKING HOUSES::

FORTUNE FINANCIAL (ABHIJIT CHAKRABORTY): “I think there is downside in the market. Fundamentally, I would say the market should bottom out somewhere around 13.5-14 times its FY12 estimated earnings. So, that way on the Nifty, we are looking at anything between 5,150-5,200 levels and about 17,500 on Sensex. At those levels, it would be an attractive buying opportunity for the market as a whole”.

ANGEL BROKING (MILEEN VASUDEO): “Markets were unable to sustain the opening positive move and selling gradually picked up momentum which dragged the indices to close deep in red. On the daily chart, we are witnessing that indices have closed below the multiple support levels of 17,820/5,350 which suggests weakness. In coming trading session if indices trade convincingly below 17,740/5,300 levels then they are likely to test 17,600-17,374/5,250-5,200 levels. On the upside, 18,000-18,150/5,400-5,450 levels may act resistance for the day”.

BONANZA PORTFOLIO (AVINASH GUPTA): “The structure of the market has weakened considerably. The market is expected to trade with a soft bias for some time”.

KARVY STOCK: “The market will take cues from the global markets and is expected to open on a flat to positive note tomorrow. Traders are advised to trade short from current levels, else from 5350 levels for targets of 5200 levels”.